Profitability Improvement
Credit card issuing and loan granting company.
Process
Financial Results Analysis
Problem
Lack of understanding of the real causes and magnitude of:
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Erosion in the most important income
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Lack of control of the most representative expenses
Objetive
Reduced income erosion by 75% and eliminate expenses outside of policy or budget.
Solucition
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Implemented a pricing policy and suppression of individual price negotiations.
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Implemented a workflow to authorize expenses, replacing checks carried out without prior authorization.
Results
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Increased Net Profit by $10M MXN in the first year after the implementation of the proposed improvements.
Service Level Improvement for order delivery
Distributor of products for the construction segment.
Process
Demand Planning and Order Fulfillment
Problem
The business lost sales by not delivering complete orders to its customers who sought to minimize their inventories and who replaced those products with those from other suppliers.
Objective
Increase complete and on-time deliveries from 83% to 95%.
Solution
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Validate customer's orders within the first 2 days after receiving it.
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Negotiate sales and promotions 1 month in advance.
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Communicate delivery times from each supply source to the customer.
Results
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96.1% of orders delivered complete and on time.
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$324,000 USD of additional annual sales (10.8% of total sales).
Collections Cycle Time Reduction
Manufacturing company that produces various products for a global marketing company.
Process
Collections
Problem
The main customer accepts invoices for validation process and payment scheduling only on Fridays. Depending on the invoice total amount, payment may be delayed for weeks. The client issues payments once a week (Thursdays).
Objetive
Reduce the total number of days to collect payment from 68 to 37 (the credit term is 30 days).
Solutions
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Implemented a calendar with exclusive billing days and days not to ship orders.
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Implemented a maximum invoice amount policy.
Results
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35 days to recover collection after implementing the proposed solutions.
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$120,000 USD cash flow that could be invested for 21 days.
Increase in the number of qualified prospects
Business prospecting services company.
Process
Demand Generation and Lead Qualification
Problem
The lead qualification process goal (growing the number of new customers) was not aligned with the ability to operate. It was confirmed that there are other critical factors in closing a sale and not just the number of qualified leads.
Objetive
Duplicate the number of Marketing Qualified Leads
Solution
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Classified and segmented the target prospect base to direct lead qualification efforts.
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Implemented a 100% digital journey (83% of prospects arrive at the website from a mobile device).
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Defined consistent objectives for each stage in the sales funnel.
Results
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Generated 8 times more qualified leads.
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35% decrease in cost per qualified lead (CPQL).
